Worthington Earnest Money Basics for Today’s Buyers

Are you hearing a lot about earnest money and wondering how it works when you buy in Worthington? You’re not alone. In a competitive north-arc Columbus suburb, this small deposit can have a big impact on your offer. In this guide, you’ll learn what earnest money is, how much buyers in Worthington typically put down, when it’s refundable, and how it applies to your closing funds. Let’s dive in.

What earnest money is

Earnest money is a good-faith deposit you submit with your offer to show you’re serious about buying. It gives the seller confidence you will perform under the contract and provides some protection if the buyer breaches.

If your purchase moves forward to closing, the deposit is credited to you. It usually counts toward your total cash to close, including your down payment and closing costs.

How escrow works in Ohio

In Ohio, earnest money is usually held by a neutral third party. The purchase contract names the escrow agent and spells out the deposit amount, timing, and release terms.

• Common escrow holders: the title or settlement company, an attorney, or a brokerage trust account.
• The funds sit in an escrow or trust account until closing or until a release is authorized.
• The agreement controls how and when funds are disbursed, including procedures for any dispute.

How much to offer in Worthington

There isn’t a single number that fits every home. Your deposit should match the property price, the level of competition, and your comfort with risk.

• Typical baseline: many suburban offers align around 1 to 2 percent of the purchase price.
• Competitive situations: deposits can rise to 2 to 5 percent to strengthen an offer.
• Lower price points: buyers sometimes use a fixed amount, such as $1,000 to $5,000.

In Worthington, demand can shift by neighborhood, price band, and season. On well-priced homes, stronger earnest money and tighter timelines can help your offer stand out. Ask your local agent what sellers are expecting right now.

What affects the right amount

Choosing the right deposit is a balance between appeal and risk. Consider:

• Purchase price and your financing plan
• Market competitiveness and the chance of multiple offers
• Seller guidance or preferences in the listing
• Property condition and appraisal risk
• Your risk tolerance if contingencies are shortened or removed
• Cash strength if you’re financing versus buying outright

When earnest money is refundable

Refundability is tied to contingencies and deadlines in your contract. If you cancel in line with the written terms and on time, the deposit is typically refundable.

Key contingencies that may protect your deposit:

• Inspection contingency. You can cancel or negotiate during the inspection period. If you terminate within that window per the contract, the escrow agent usually returns your deposit.
• Financing contingency. If you are unable to secure your loan within the allowed time and provide proper notice, your deposit is typically refunded.
• Appraisal contingency. If the appraisal comes in below the purchase price and the contract gives you that protection, you can often cancel and recover your funds if a solution isn’t reached.
• Title contingency. Unresolvable title defects may allow you to terminate with a refund.
• Home sale contingency. If included, this can protect your deposit when your purchase depends on selling your current home.

Always follow notice procedures and deadlines. Missing a deadline or failing to give written notice can put your refund at risk.

How refunds work in practice

If you cancel within a valid contingency and meet notice requirements, the escrow holder typically returns your earnest money according to the contract. If you remove contingencies and then default, the seller may claim the deposit as liquidated damages, depending on the agreement. Many contracts require a signed mutual release before the escrow agent can disburse funds.

Earnest money vs. down payment

Earnest money and down payment serve different purposes and happen at different times.

• Earnest money: a short-term good-faith deposit submitted with your offer and held in escrow.
• Down payment: paid at closing as part of your total funds, alongside your lender’s loan proceeds.

At closing, your earnest money is credited to you. For example, if your down payment is $20,000 and you already deposited $5,000 in earnest money, you would bring the remaining $15,000 plus closing costs.

Timeline and what to expect

While every contract is different, most Worthington buyers can expect these steps:

1. Make an offer. Include the escrow holder, deposit amount, and deposit deadline.
2. Deliver funds. Follow the contract timeline and the escrow holder’s instructions.
3. Work through contingencies. Complete inspections, appraisal, and loan process within the stated periods.
4. Decide and notify. If you are moving ahead, remove contingencies as required. If not, provide written notice within deadlines to seek a refund.
5. Close and credit. Your earnest money is applied to your cash to close at settlement.

Smart strategies in a competitive market

In Worthington’s more competitive moments, you can strengthen your position without taking on unnecessary risk.

• Calibrate your deposit. Use a meaningful amount, but keep key protections if you need them.
• Tighten timelines carefully. Shorter inspection periods can be attractive, but make sure you can meet them.
• Keep documentation. Save inspection reports, lender communications, and appraisal results in case you need to terminate under a contingency.
• Clarify the escrow details. Confirm who holds the funds and how releases work if there’s a dispute.
• Pair strength with safeguards. If you raise your deposit, ensure the contract language clearly protects refundability under your chosen contingencies.

Quick checklist for Worthington buyers

• Ask your agent what deposit amounts sellers are accepting now.
• Confirm the escrow company, contact info, and deposit deadline in writing.
• Include inspection, financing, and appraisal protections if you want refund options.
• Track every deadline and send required notices in writing.
• Keep inspection, appraisal, and lender documents to support a lawful termination.
• Remember: your deposit is credited at closing unless forfeited due to a breach.

Example scenarios

• Scenario A — Standard offer with protections. You offer $350,000 with a $3,500 deposit (1 percent) and inspection and financing contingencies. Major issues appear in inspection and you terminate on time. Your deposit is refunded.
• Scenario B — Competitive offer. You offer $350,000 with a $10,500 deposit (3 percent) and a shortened inspection period to stand out. If you later cancel after removing contingencies, you could forfeit the larger deposit.

Ready to move forward with confidence? A local advisor can help you tailor the right deposit, set smart timelines, and protect your interests from offer to close.

If you want guidance that’s calm, clear, and rooted in Worthington expertise, reach out to Greg Giessler. You’ll get straight answers, steady communication, and a plan that fits your goals.

FAQs

What is earnest money in a Worthington home purchase?

• It’s a good-faith deposit you submit with your offer that shows commitment and is usually credited back to you at closing unless forfeited under the contract.

How much earnest money do Worthington sellers expect?

• Many accepted offers use 1 to 2 percent of the price as a baseline, with larger deposits in multiple-offer situations; ask your agent for current neighborhood norms.

Who holds the earnest money in Ohio?

• Typically a title or settlement company, an attorney, or a brokerage trust account named in the purchase agreement.

When is earnest money refundable to the buyer?

• It’s often refundable if you cancel under a valid contingency—such as inspection, financing, appraisal, or title—within the contract’s deadlines and notice rules.

How does earnest money differ from my down payment?

• Earnest money is a deposit made with your offer; at closing, it’s credited toward your total cash to close and is not extra money beyond what you already owe.

What happens if there’s a dispute over the deposit?

• Many contracts require a mutual release before funds are disbursed; absent agreement, the escrow holder may retain the funds until mediation, arbitration, or a court order.